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Learn Challenge: Generate Amortization Schedule | Risk Assessment and Loan Analytics
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Python for Bankers
Sectionย 2. Chapterย 7
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bookChallenge: Generate Amortization Schedule

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Task

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Given a loan's principal, annual interest rate, and term in months, create a function that calculates the monthly payment and builds a pandas DataFrame showing the amortization schedule, with each month's payment broken down into principal and interest, and the remaining balance.

  • Calculate the monthly payment using the amortization formula.
  • For each month, determine the interest portion and principal portion of the payment.
  • Update the remaining balance after each payment.
  • Build a pandas DataFrame containing columns for month, payment, principal, interest, and remaining balance.
  • Return the DataFrame.

Solution

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Sectionย 2. Chapterย 7
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